A conventional loan is a mortgage that isn't insured or guaranteed by the federal government. These loans typically require a higher credit score (usually 620 or above) and a down payment, though you can qualify with as little as 3% down. If you put down less than 20%, you'll pay private mortgage insurance (PMI) until you reach 20% equity.

Conventional loans often offer competitive rates and more flexibility than government-backed loans, making them a solid choice if your financial picture is strong. They're the most common type of mortgage in the U.S.